The United States is moving to come up with new rules to regulate cryptocurrencies amid growing concerns it is causing in the economy. This fast-growing industry is a haven for cybercriminals and poses serious risks to financial stability.
The White House has claimed that its goal was to protect consumers while maintaining America’s technological leadership. The executive order comes as investment in digital assets such as Bitcoin has skyrocketed, rising from an estimated €14 billion to more than €25 billion in just five years.
Legislation is way behind
Currently, more than 100 countries, including China, are exploring or testing the use of digital currencies by central banks, both for internal use and in cross-border transactions. White House officials have already claimed that this could have implications for the centrality of the US dollar in the global financial system.
While different parts of the US government have studied the issue, including the central bank, there has been little legislative action. An executive order signed by President Joe Biden a few weeks ago requires officials to develop regulatory proposals before the end of 2022. The country’s government is urgently seeking a way to organize itself in order to have a coherent and coordinated vision of digital assets. .
The US Treasury Department has also signaled that it wants to see more oversight of companies offering digital currencies that bill themselves backed by the dollar. Surveys suggest that 16% of American adults have invested in cryptocurrencies, including many in minority communities that have historically had less access to banks, such as African-Americans.
The issue has also gained urgency amid the Ukraine war, as politicians raise concerns that cryptocurrency could be used to evade financial sanctions on Russia. Many in the industry have pushed for the government to clarify what kinds of rules and regulations could be put in place, hoping to shape what may come.
From Circle, one of the largest companies involved in the trading of digital currencies backed by dollars, they affirm that Biden’s executive order has marked a turning point in the country’s politics and represents an unparalleled opportunity to be able to regulate the entire currency market. the crypto assets.
Some analysts say the threat of restrictive laws has weighed on crypto prices in recent weeks. A month ago, the value of Bitcoin fell by more than 8% and that of other cryptocurrencies also plummeted.
Although it does not finish specifying specific actions, the order provides some clarity on what will be regulated more or less in the cryptoactive business. It also provides more information about what kind of activity is likely to be considered illegal in the future.
